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06/2024

L.S. STARRETT COMPANY acquired by MIDDLEGROUND CAPITAL

UNITED STATES Industrial Equipment / Special Machinery / Instrumentation & Measurement EV 100M - 350M USD

Context

The acquisition of The L.S. Starrett Company by MiddleGround Capital represents a significant take-private transaction in the industrial tools sector, concluding the company's 144-year history as a publicly-traded entity. Strategically, this move allows Starrett to transition from the quarterly pressures of the public markets to a private environment where it can focus on long-term operational flexibility and strategic capital deployment. The rationale for the investment centers on MiddleGround's intent to amplify Starrett's iconic brand status by scaling its geographic reach and diversifying its robust range of metrology and cutting tool offerings. The partnership aims to capitalize on key industrial trends, including the resurgence of advanced manufacturing and the reshoring of critical production to North America. Following the shareholder approval and delisting from the New York Stock Exchange, the company will benefit from MiddleGround’s deep operational expertise and financial backing to professionalize its global manufacturing footprint.

L.S. STARRETT COMPANY, which reported an EBITDA margin of LOGIN in 2024, is valued in this transaction at an EV/EBITDA multiple of LOGIN, a level LOGIN than the average currently observed in the Industry & Manufacturing sector (11.6x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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Target

The L.S. Starrett Company is an iconic American manufacturer recognized globally for its high-end precision tools, cutting equipment, and metrology systems. Founded in 1880 and headquartered in Athol, Massachusetts, the firm operates an extensive industrial platform producing over 5,000 different products, including micrometers, calipers, saw blades, and sophisticated electronic measuring instruments. Its business model is anchored in providing mission-critical precision for the global manufacturing industrial base, with a primary focus on the metalworking, aerospace, automotive, and machinery sectors. Operating four major global manufacturing plants, the company leverages a long-standing reputation for reliability and technical excellence to maintain its position as a "gold standard" for machinists and engineers. The firm’s value proposition is driven by a commitment to manufacturing innovation and high-assurance quality control, ensuring that its products meet the rigorous standards of advanced manufacturing environments. As a cornerstone of the industrial supply chain, Starrett distributes its broad array of measuring and cutting solutions through multiple global channels, supporting the ongoing trends of industrial reshoring and the demand for high-precision metrology in automated production lines.

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Historical Financials (USD)

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REFERENCES

Valuation range: EV 100M - 350M USD

Revenue range: 250M - 500M USD

EBITDA range: 10M - 30M USD

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of L.S. STARRETT COMPANY by MIDDLEGROUND CAPITAL are reserved for mynth community members. Register for free to unlock full data.

Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).

Press release: view release

Target: l.s. starrett company

Acquirer: middleground capital